United Kingdom (IEA, 1998). However, government and regulators should work togetheron planning activities and the security of supply, to avoid possible shortage problems thathappened in these countries.
Regulation of the natural gas industry is recent in Brazil. The agencies regulating thisindustry, both in Federal and state levels
, were set up only in the late 90’s. “Agência Nacional
Petróleo” (ANP), a Federal regulatory agency, was created by
Law 9,478, in 06/08/1997, duringthe government of President Fernando Henrique Cardoso, to regulate and monitor oil, natural gasand other fuels
markets. ANP regulates natural gas upstream activities (production, imports, andtransportation) and storage. Before a constitutional amendment in 1995, a legal monopoly grantedthe oil and gas upstream activities to a Federal-government-owned company called Petrobras.The current Constitution, holding since 1988, sets forth that the Brazilian states areresponsible to explore downstream natural gas services (distribution and retail trading). ThatConstitution allowed initially just state-owned companies to carry out such services. Aconstitutional amendment, also approved by Congress in 1995, extended this right to investor-owned companies holding a concession contract granted by the state governments. So, today, thestate governments, through local agencies, regulate the downstream activities of the gas industry inthe country (ANP, 2001). Figure 1 shows the current natural gas industry organization in Brazil,while Figure 2 illustrates the regulatory regimes holding since Law 9,478 was passed in 1997.
Figure 1: Organization of the Brazilian natural gas industry
Policy: federal government
Policy: state government
State regulatory agencies
Natural gasexploration,production,processing,importation andstorage